Roanoke Times Copyright (c) 1995, Landmark Communications, Inc. DATE: TUESDAY, July 24, 1990 TAG: 9007240342 SECTION: VIRGINIA PAGE: B-3 EDITION: METRO SOURCE: LESLIE TAYLOR STAFF WRITER DATELINE: LENGTH: Medium
Last month, council directed the city attorney to draft the resolution, which urges state legislators to add Salem to the list of localities that have the right to prorate personal-property taxes.
City Manager Randy Smith and Max Brown, Salem's commissioner of revenue, asked council to study the feasibility of prorating the city's personal-property taxes. Such action would generate an additional $200,000 to $300,000 in revenue, it has been estimated.
But Salem couldn't prorate the taxes until the General Assembly approved an amendment to the state code adding Salem to the list of localities permitted to take such action.
Copies of the resolution will be forwarded to Sen. Dudley Emick Jr. and Del. Steve Agee.
Under Salem's current system, a resident could purchase a car in, say, January 1991 and not pay taxes on it until May 1992.
Salem's personal-property tax rate is $3.20 per $100 of assessed value.
In another matter, council gave initial approval to an ordinance amendment that was sparked by the Stephenson & Aldridge furniture company's going-out-of-business sale.
The amendment specifies that the city commissioner of revenue issue permits to retail merchants who are going out of business and set up a $65 "special sale" permit fee.
The current code only states that the "local governing body" issues permits and does not include a permit fee.
In May, Stephenson & Aldridge announced it would be closing because of the health of its owners and sluggish business. State law requires that a company quitting business have a license for its final sale and provide an inventory of what is to be sold.
The law forbids mixing other goods with the inventoried items, as the Better Business Bureau alleged the store had done.
The company had asked the Salem commissioner of revenue about getting a license but was told, mistakenly, that it didn't need one. The commissioner later issued a license, which was rescinded until a full inventory of items to be sold was received.
Store officials delivered the inventory a day later and the license was reissued.
by CNB